By Emmanuel Nduka
United Bank for Africa (UBA) Plc, and Deutsche Investitions- und Entwicklungsgesellschaft mbH, a German Development Finance Institution, have entered into a $50m partnership to support Small and Medium Enterprises (SMEs) in Nigeria.
The $50m Term Facility Agreement was signed with a tenure of six years, and targeted at supporting SMEs and family-owned businesses in Nigeria.
Speaking about the partnership, UBA America’s Chief Executive Officer, Sola Yomi-Ajayi, said as a financial institution, UBA remains passionate about the growth of the private sector and small businesses which according to her, remains critical for any developing country.
She noted that the passion to see this sector succeed is what led both organisations to collaborate on this laudable feat, adding that “at UBA Group, we are proud of this collaboration with DEG, particularly as it supports our financial intervention in the SME space, enabling financial inclusion, as well as facilitating economic empowerment.”
“These objectives remain core aspects of our strategy, particularly as regards to facilitating the achievement of Sustainable Development Goals on the African continent,” she added.
In his remarks, DEG’s Regional Director for West Africa, Bernhard Tilemann, said, “DEG is delighted to enter into a long-term cooperation with UBA in Nigeria and the region. This cooperation will address the current economic challenges of the country while fostering private sector growth and impact in the largest economy of the continent.”
According to Tilemann, the funding provided by DEG is partly supported by EB-SME Finance Fund Emerging Markets, while the fund’s adviser is a 100% subsidiary of Evangelische Bank (EB).
He further noted that DEG has offices on the African continent in Lagos, Abidjan, Johannesburg and Nairobi; and pointed out that the move is a major milestone for DEG’s Regional Representative Office which began operations in 2019 in Lagos.
